Poloniex Legacy Users Experience Massive Accounts Freezes

Poloniex’s subreddit increasingly being dominated by complaints from ‎‎customers‎.

Popular cryptocurrency exchange Poloniex has put a temporary ‎hold on its legacy account users as the Delaware-based platform is ‎implementing a new know your customer (KYC) verification process.‎

Back in December, Poloniex started to implement an identity ‎verification process for all its new registrants. At the time, legacy ‎account holders were ‘grandfathered’ with the privilege of not being ‎required to submit identity credentials.‎

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Now Poloniex inactivates accounts that were registered under its old ‎guidelines, reportedly sending emails requesting legacy users to comply ‎with the new verification method or their unverified accounts will be ‎closed.     ‎

As of now, the latest information coming from customers demonstrated that ‎the majority of frozen accounts belong to those owners who have not ‎previously undergone verification. They were forbidden to withdraw funds ‎from accounts and are required to undergo verification immediately. ‎

However, the new system doesn’t seem to work properly as some of those ‎owners who have undergone verification are still unable to access their ‎account even after completing the automated process.‎

This is what the customers of the exchange are discussing on the Reddit forum. ‎One user complains: “I got an email reply saying i [sic] had been verified. ‎(My profile now says i [sic] have a ‘level 3 verification’ – the type that allows ‎‎$25,000 per day).” But when he goes “to trade or try to place an order,” it ‎tells him “’account frozen.’‎

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It is rumored that the actions of the exchange are dictated by pressure from ‎the US regulators after the firm was acquired by Goldman Sachs-‎backed Circle. Poloniex was recently the subject of news blasts after ‎Circle acquired the cryptocurrency exchange in a deal reportedly worth ‎‎$400 million.‎

With Poloniex’s subreddit increasingly being dominated by complaints from ‎customers, the company has issued an explanatory tweet seeking to clarify ‎the reasons behind their failure to unblock accounts.‎

Despite the words of assurance, the comments on the tweet reveal many ‎customers claiming that their withdrawals still have not been processing, ‎with many others alleging that verification is not working for most. ‎

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